§ 26-9-229 — Reporting and accounting for premiums

(a) Any premiums or return premiums received by an
insurance producer are trust funds received in a fiduciary
capacity, and the producer, in the regular course of business,
shall account for and pay the funds to the insured, insurer or
insurance producer entitled thereto.
(b) The licensee shall establish a separate trust account
for premiums specified in subsection (a) of this section and
shall not use the account for or commingle it with his own
funds. He shall maintain an accurate record and itemization of
the funds deposited in the account.
(c) Any insurance producer who diverts or appropriates any
funds, to which he is not lawfully entitled, to his own use is
guilty of embezzlement and upon conviction shall be punished as
provided by law.
(d) A limited lines producer for specialty limited lines
shall not be required to treat monies collected from customers
purchasing additional specialty limited lines insurance as funds
received in a fiduciary capacity, provided that:
(i) The charges for specialty limited lines insurance
coverage are itemized and ancillary to the principal business
transaction; and
(ii) The insurer has consented in writing, signed by
an officer of the insurer, that premiums need not be segregated
from funds received by the producer for the principal business
transaction.